German Business Sentiment Deteriorates | WTI Jumps on Retaliatory Tariff Threats
Published August 26, 2019
Economic surveys have demonstrated that German business sentiment has deteriorated more than expected in August after hitting its lowest level since November 2012. This is a further sign that Europe’s largest economy is sliding towards a recession. The Ifo Institute for Research stated its Business Climate Index fell to 94.3 from an upwardly revised 95.8 in July.
President Trump has stated that China called him and asked to restart trade talks. This statement came after China’s top trade negotiator said they were willing to solve the trade problem “through consultation and cooperation with a calm attitude”. The market reaction to Trump’s comments this morning has been positive after the Asian trading session saw heavy selling in the wake of the president’s announcements on Friday.
Oil prices were down on Monday in Asia after China announced late last week an additional 5% tariff on $75 billion of US products, including crude. In retaliation, President Trump ordered US companies to consider closing operations in China and make products in the United States instead. US Crude Oil WTI Futures have jumped over 3.0% in early trading to $55.01.